Comments on: Financial Industry Regulatory Authority Urges Caution On Leveraged ETF’S (FAZ, FAS)

By: ETF DAILY NEWS » Leveraged ETF’s Have Become A Day Traders Dream Come True (FAS, FAZ)

Fri, 14 Aug 2009 18:53:20 +0000

[...] Dream Come True (FAS, FAZ) August 14th, 2009 Goto comments Leave a comment With all the criticism about leveraged ETF’s, not much has been said about how much of a great investment tool they are. Many day traders [...]

By: ETF DAILY NEWS » 3X Leveraged ETF’s Create Havoc To The Retail Investor (FAZ, FAS)

Mon, 20 Jul 2009 15:17:20 +0000

[...] “ETFs trade daily on exchanges like stocks. Leveraged ETFs, sometimes labeled “ultra” or “2X,” use futures or derivatives to multiply the daily returns of an index, sometimes striving to double or triple the return. Lately they’ve come under the scrutiny of regulators. Whether that will put a chill on their use remains to be seen. The Financial Industry Regulatory Authority reminded brokers and registered investment advisers in a June notice about their fiduciary duties when selling ETFs that offer leverage, are designed to perform inversely to the index or benchmark they track, or both. Finra reminded brokers and advisers that the instruments are complex and typically unsuitable for retail investors who plan to hold them longer than one trading session,” WSJ Reports. SEE OUR PREVIOUS FINRA STORY [...]

By: ETF DAILY NEWS » Secretary of State William Galvin Launches Investigation Into Leveraged ETF’s (FAZ, FAS, BGU, BGZ)

Wed, 15 Jul 2009 16:26:59 +0000

[...] Galvin said he has sent letters to a trio of leveraged ETF providers including Rydex Investments, Direxion Funds and ProShares. “Because these leveraged exchange traded funds are reset every day, buy-and-hold investors often find that their returns vary greatly from those of the corresponding index,” Galvin said in a press release. “So it is important that retail investors be provided with all the information necessary to make informed choices about these products.” FINRA, which regulates securities firms, last month released an advisory notice reminding firms of their sales-practice obligations in connection with leveraged ETFs. SEE OUR FINRA STORY HERE [...]

By: ETF DAILY NEWS » The Real Decay In Double And Triple Leveraged ETF’S (FAS, FAZ, SRS, SKF)

Mon, 13 Jul 2009 17:32:37 +0000

[...] term decay in leveraged ETF’s has created a stir with investors and regulatory officials. See this post on FINRA. Daily volatility in the markets has eroded the ETF’s long term. I found [...]

By: ETF DAILY NEWS » The Reverse Split In ETF’s (FAS & FAZ) May Reduce The Market’s Volume By 5%

Thu, 09 Jul 2009 15:52:44 +0000

[...] This reverse split may reduce tading volume in the markets by 5%. This is a considerable amount of volume in what has been an already low volume market. Some believe the reverse split was done to draw away attention from the ETF’s which have drawn much criticism. SEE: Financial Industry Regulatory Authority Urges Caution On Leveraged ETF’S (FAZ, FAS) [...]

By: ETF DAILY NEWS » Competition Is heating Up In The Triple Leveraged ETF World (FAZ, FAS, UPRO, SPXU)

Sat, 27 Jun 2009 18:29:15 +0000

[...] leveraged ETF’s have also raised many eyebrows. FINRA -The Financial Industry Regulatory Authority has recently urged caution to the financial industry on leveraged and inverse ETF’s. [...]

By: Etf Daily News » Financial Industry Regulatory Authority Urges …

Etf Daily News » Financial Industry Regulatory Authority Urges … — Fri, 26 Jun 2009 13:07:06 +0000

[...] “Michael Sapir, chairman and chief executive of ProFunds Group, said ProFunds is supportive of any effort to educate brokers and investors about the benefits and risks of leveraged funds. But he added that such ETFs are “not more …Continue Reading [...]